This moderate rise will take place in the context of the global economy_s slow and heterogeneous recovery, with...

This moderate rise will take place in the context of the global economy_s slow and heterogeneous recovery, with downward pressure on commodity prices and little dynamism in the region_s external demand as well as an increase in financial uncertainty.

The evolution of the global economy will have different impacts among countries and sub-regions in 2015, as it did throughout 2014. Central America plus Haiti and the Spanish-speaking Caribbean are expected to grow at a rate of 4.1%, South America at 1.8%, and the English-speaking Caribbean at 2.2%.

The countries leading the regional expansion next year will be Panama, with an increase in its Gross Domestic Product (GDP) of 7.0%, Bolivia (5.5%), Peru, the Dominican Republic and Nicaragua (5.0%).

In 2014, average regional growth was just 1.1%, marking the smallest expansion since 2009. The region_s performance shows great heterogeneity among countries and sub-regions: Central America plus Haiti and the Spanish-speaking Caribbean grew 3.7%, South America 0.7%, and the English-speaking Caribbean 1.9%.

In fiscal terms, Latin America will register a slight increase in its deficit to 2.7% of GDP in 2014 from 2.4% in 2013, while the Caribbean will reduce its deficit to 3.9% in 2014 from 4.1% last year. In addition, the public debt of the region_s countries will remain at low and stable levels, averaging around 32% of GDP.

Meanwhile, accumulated regional inflation in the 12 months to October was 9.4% on average, with a very diverse performance among countries, and the urban open unemployment rate will register a fresh decline to 6.0% from 6.2% the previous year, despite the weak job creation resulting from low economic growth.

The deceleration in investment observed since 2011, and which showed a roughly 3.5% contraction during 2014, is an important factor in the decline of the GDP growth rate.

These figures were presented during a press conference at ECLAC_s headquarters in Santiago, Chile, by the Commission_s Executive Secretary, Alicia Barcena, and are part of the annual report Preliminary Review of the Economies of Latin America and the Caribbean, 2014, which will be published soon.

_To invigorate economic growth and stop deceleration in the global economy_s current context entails significant challenges for the region,_ Alicia Barcena said during the press conference. _Among these, it is necessary to revive domestic demand prioritizing the dynamics of investment. This should impact positively on the economies_ productivity and competitiveness,_ she added.

To that effect, ECLAC proposes expanding the countercyclical macroeconomic architecture to incorporate mechanisms that protect investment financing, particularly that of infrastructure, through the different phases of the cycle.